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Questions you might have

What is bitcoin?

Bitcoin is the first decentralized digital currency and the leading cryptocurrency worldwide. Bitcoin serves as a store of value and is therefore often referred to as digital gold.

Where can I buy bitcoin in the USA?

The easiest way to buy bitcoin in the United States is through a bitcoin exchange on the Internet.

What is a bitcoin exchange?

A bitcoin exchange is a marketplace where buyers and sellers trade bitcoins. Just like regular stock exchanges, a bitcoin exchange serves as a middleman who sets the market price at which an equal number of buyers and sellers can be found.

What do I have to consider when buying bitcoin in the USA?

There are a lot of factors to consider when buying bitcoin. Firstly, you should always compare current prices and fees to avoid overpaying. Secondly, terms and conditions on the use of different payment methods vary between different bitcoin exchanges. Thirdly, you want to make sure that your bitcoin exchange has a good security track record. Last but not least, you want to make sure that the identity verification process of the bitcoin exchange is smooth.

Do I have to pay tax on bitcoin in the USA?

The IRS treats bitcoin as a property. As a result, there is no VAT on the purchase of bitcoin. However, any sales of bitcoin are subject to capital gains tax.

How high are the taxes on bitcoin in the USA?

Selling bitcoin is a taxable event in the United States and subject to capital gains tax. Short-term investments are thereby taxed at the same rate as income. Long-term capital gains are taxed at lower rated between 0% and 20%, depending on your individual income.